Earlier this year, the European Central Bank began implementing a quantitative easing (QE) programme. John Doukas writes that while conventional economic thinking would suggest QE should provide short-term benefits to European economies, it may also be having unintended consequences by giving certain sectors of society, particularly those at or near retirement age, less incentive to spend. He argues that […]

A scarcity of government bonds could pose problems for the ECB’s quantitative easing programme

The European Central Bank’s quantitative easing programme is scheduled to start this month. John Doukas writes that while the programme might well boost EU economies, there remain significant question marks over whether it is sufficient to generate substantial growth in struggling Eurozone countries. He also notes that a scarcity of government bonds could pose problems, and that the ECB […]

Quantitative easing has been adopted by a number of central banks in the wake of the global financial crisis. John Doukas takes an in-depth look at the effects of quantitative easing, arguing that it not only fails to increase real economic activity, it also increases unemployment and encourages outsourcing to developing countries that offer higher rates of return. He concludes […]

As the Eurozone crisis continues, John Doukas assesses the next options available to the ECB, arguing that printing more money will not solve the fundamental problems underpinning struggling European economies. Instead, the EU needs to encourage the private sector to function as a willing partner in boosting economic activity and to strengthen its trust in the Eurozone. The article concludes […]

To combat Europe’s financial and economic crisis the European Central Bank (ECB) has pursued quantitative easing (QE). Such money-printing-policy in the name of crisis management and financial stability acts as a disincentive for banks to restructure their balance sheets and adopt healthy business practices, argues John Doukas. Ultimately, it undermines the value and purchasing power of any currency and will […]

John Doukas argues that Germany has been the only country in the European Union which benefitted from the introduction of the Euro. In countries such as Greece and Spain the adoption of the Euro only fuelled excessive debt-making due to lower interest rates on government bonds, he believes. The Euro zone crisis and the uncertainty about the fate of the […]

Since the beginning of the crisis, politicians, governments and institutions have scrambled to preserve the Euro. John Doukas argues that not only is the common currency in danger, but also the European Central Bank (ECB) which has a balance sheet that consists of the debt obligations of member governments and their banks. But who will bail out the ECB? The […]